Time Warner's Foreign Affair Gets Serious--Heard on the Street

Firm Faces Tough Choices Over European TV Broadcaster

Time Warner's relationship with Central Europe is on the rocks. Ironically, that may mean it finally is time to pop the question.

In a quest for growth, the media conglomerate built a 49.9% stake in Central European Media Enterprises, a U.S.-listed TV broadcaster focused on a handful of countries, including Romania and the Czech Republic.

But the region's economies have been slow to recover from the financial crisis. That has...